Avon Lake school officials answer levy questions

AVON LAKE The school district has a lot riding on Issue 10, a $6.5 million per year emergency levy, which will be on the May 7 primary election ballot. A previous levy failed last November and school officials have spent the past six months cutting the budget and trying to educate not only the district’s 3,817 students, but also taxpayers who have questioned the need for the levy.

During a public forum last week, residents had the opportunity ask questions of Superintendent Bob Scott, Treasurer Autumn Streng, Avon Lake Education Association President Leslie Koelsch, and school board members Ron Jantz and Pam Ohradzansky.

Here is some of the information that was shared.

Revenue losses spur need

Streng reported that the district has lost $2.9 million from 2011-13 from state revenue cuts and $4 million from 2009-13 in local revenue. The losses center around the devaluation of the power plant, now owned by NRG Energy; losses from public utility personal property reimbursements; and the phaseout of tangible personal property taxes. In fiscal year 2007, the district received $9,434,551 in TPP and is projected to receive only $1,499,642 in FY 2017.

“This was a catastrophic loss in revenue that could not have been predicted,” Streng said, adding that the district is asking for less money than has been lost, due to the savings and spending constraints the district has implemented.

“We are constantly looking at how to save money and had been even before we suffered the losses in revenue,” she said.

‘Property wealthy’

equals less funding

Because the state considers the district “property wealthy,” the schools do not receive much state foundation money. The average per-pupil expenditure is $10,859, which ranks 33rd out of 45 school districts in Cuyahoga and Lorain counties.

The state foots the bill for $336 per student, Scott said, adding that the reimbursement has remained constant for the last 10 years, despite the increase in enrollment and inflationary factors. Projections show the district will have at least 850 more students in 2016-17 than expected for the 2007-08 school year.

Jantz said it is important to note that while the district receives $336, if a family sends a student to a charter school, the district must pay $5,700 per year to the charter school for that child’s education.

Closure’s full impact

still unknown

Streng said the district has been planning as much as possible for the closing of the power plant, which is scheduled for April 2015. The district expects an additional devaluation of the property at some point, but it is unknown when that will occur. There is no recourse to appeal the devaluations.

“We will feel the full impact in 2017, but as we forecast it is impossible to estimate what the property will be worth once it is fully devalued. The land is there and still holds value, but who knows what will happen to it?” Streng said.

“We are trying to be as realistic as possible, but haven’t budgeted in those reductions in value based on advice from an expert in the field of PUPP taxation,” she said.

Teachers step up

About 80 percent of the district’s budget goes to salary and benefits. Residents questioned why teachers’ salaries ranged from $36,000 to $81,000.

On average, Avon Lake teachers have more than 10 years of teaching experience. Koelsch, who is an art teacher and president of the teachers’ union, said the salary scale reflects that experience and takes into account additional degrees and certifications that are, in some cases, mandated by the state for them to keep teaching at their grade level.

The school district is required by the state to pay 14 percent of a teacher’s salary into the State Teachers Retirement System. Because of those payments, the district does not pay Social Security. And, while the district cannot raise or mandate a retirement age, Koelsch said changes in the STRS system will result in more teachers teaching longer.

Teachers agreed to five years of base (cost of living) freezes starting in 2010. Step (experience) increases were frozen in 2010-11, 2011-12, 2012-13 and 2014-15.

“We need to be able to attract and retain quality educators, especially with the new accountability standards the state is requiring. We need the type of staff we have right now — well-educated and well-trained. At some point we are going to have to look at raises. We’ll negotiate, look at what’s going on the world and make an appropriate decision,” Scott said.

Health care

savingsadd up

Scott said the district’s health care committee has worked to implement savings. Teachers’ and administrators’ salaries increased plan contributions to 15 percent, and the classified union members will increase their contribution 3 percent, to 15 percent, on July 1.

The district joined a health care consortium Jan. 1, 2013, that will save the district $700,000 yearly. The majority of the districts within the consortium have contribution rates that are less than what Avon Lake employees are paying for insurance, Streng said.

Ohradzansky said the district went eight years without an increase in premiums and saw decreases in two years, which has made a difference in keeping costs down. One year of high usage, however, saw the district’s premiums increase 41 percent.

“After that big hit, the committee decided to review our options and decided that self-insuring wasn’t the best option going forward,” she said.

Streng said an unknown factor is the impact the Affordable Care Act will have on the district and the consortium.

“It will increase costs associated with insurance for the Avon Lake City Schools. The known increases have been included in the five-year forecast; however, the full impact of health care reform will not be known until more details are released from the federal level.”

What happens

in five years?

Some in the audience questioned a 10-year levy when there is so much unknown. Scott said opting for a five-year levy would result in a renewal in calendar year 2018, the same year the $1.8 million revenue loss from the closing of the power plan takes full effect but before the property devaluation takes effect or is known. A renewal for the 2006 emergency levy already is scheduled for 2018.

“The idea is not that we would come back for another new money levy. We will work hard to make these dollars last as long as possible.” He noted that the 2006 levy lasted eight years and would have lasted until 2017, had the revenue losses not occurred.

“You can provide education for almost any amount, but I don’t think anyone in Avon Lake would like what that education would look like,” Scott said.

“We are at a crossroads. One path leads to the possibility of a bright future for all and the other leads to minimum expectations and minimum success for all. Avon Lake City Schools have been an important part of the community for almost 100 years.

“As the world changes, our school system must be strong enough to meet those demands. In order to do this, it must continue to have strong community support.”

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